Capital will see values increase as fast as Manchester and Edinburgh after years of lagging behind
London, Edinburgh and Manchester are forecast to have the highest house price growth of major UK cities over the next five years, according to estate agent JLL.
The firm released its regional forecasts in which it analysed 10 of the largest cities in the UK, and predicted that London, Manchester and Edinburgh would perform equally strongly, registering house price growth of 17.1% in five years.
JLL said these three locations would see the most rapid growth. It represents a turnaround for the capital, which has seen sluggish house-price growth in recent years compared particularly with northern cities.
Close behind the three was Bristol, which JLL predicted would see growth of exactly 17% from 2020 to 2024. These cities contrasted with JLL’s forecast for the UK on average, which it said would see 14.8% growth in prices.
The firm’s forecast said UK housing market sentiment would brighten during 2020 as the uncertainty created by Brexit diminished. This contrasts with a number of other forecasters, including Savills, which has indicated that sentiment may dip toward the end of the year depending on the outcome of talks designed to secure a post-Brexit trade deal with the EU.
The research did not make any forecast as to the potential impact on prices and sentiment of the current coronavirus outbreak.
Nick Whitten, director of UK living research at JLL, said 2020 would be a milestone year for getting the UK housing market back on track.
He added: “While there is a level of uncertainty that is affecting all markets, including housing, as everything begins to stabilise, housebuilders will be able to move forward and we can expect significant growth in the property sector across the UK.
While the predicted house price growth would “embed” from 2021 onwards, the report said that an increase in housing starts, which have reduced in the past year, would take longer to occur.
Whitten said he expected that continued growth in regional cities would prompt a shift in the development industry from being so “London-centric”.
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